A cafeteria is using milk for its daily operations. Assume that the cafeteria is open 320 days a year and its daily demand is estimated at 10 gallons. Carrying costs are $5 per gallon per year. Ordering costs are estimated at $30 per order. It takes 3 days for each order of flour to be filled.

1. What is the Economic Order Quantity?
2. Assume no safety stock is required, what is bakery reorder point?
3. What is the Total Annual Holding Cost?
4. What's the number of optimal orders placed in a year?